Takeda, Lilly to Challenge $9 Billion Verdict in Diabetes Drug Case

Apr 09, 2014

By Pharmaceutical Technology Editors

Takeda Pharmaceuticals U.S.A., Inc. and Eli Lilly and Company announced that the companies plan to challenge the $9 billion judgment awarded by a jury in a lawsuit that alleged that Actos caused a patient’s bladder cancer.

In the case of Terrence Allen, et al. v. Takeda Pharmaceuticals North America, Inc., et al., a jury in United States District Court, Western District Louisiana found in favor of the plaintiffs and awarded $1.475 million in compensatory damages. The allocation of liability was 75% Takeda and 25% Eli Lilly. The jury also awarded $6 billion in punitive damages from Takeda and $3 billion from co-defendant, Eli Lilly.

“Takeda respectfully disagrees with the verdict and we intend to vigorously challenge this outcome through all available legal means, including possible post-trial motions and an appeal,” said Kenneth D. Greisman, senior vice president, general counsel, Takeda Pharmaceuticals U.S.A., Inc. in a company statement. “We have empathy for the Allens, but we believe the evidence did not support a finding that Actos caused his bladder cancer. We also believe we demonstrated that Takeda acted responsibly with regard to Actos.”

"While we have empathy for the plaintiff, we believe the evidence did not support his claims," said Mike Harrington, senior vice president and general counsel. "Lilly disagrees with the verdict and we intend to vigorously challenge this outcome through all available legal means."

In June 2011, FDA issued a warning that there is an increase in bladder cancer risk in people who used the drug for longer than a year. The agency required that the cancer risk be added to the medication's warning label.

Judgments were entered in Takeda's favor in three previous Actos trials. Lilly was not named previously. This is the first federal case to be tried and the first in the consolidated Actos multidistrict litigation, the companies report. Lilly copromoted Actos with Takeda from 1999 to 2006.

Under Lilly's agreement with Takeda, Lilly will be indemnified by Takeda for its losses and expenses with respect to the US litigation and other related expenses in accordance with the terms of its indemnification agreement.